Employment and Support Allowance (ESA)
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Can anyone clarify

I read an old post on how many national insurance contributions needed to make claim for contributory ESA . My understanding is that there are 2 conditions 
That 26 weeks NI credits class 1 or 2  in previous 2 tax years before the current tax of of the claim
The second precondition I just don't understand. It goes that you must have 50 NI credits for each of the previous 2 years equal to 50 x low earning limit

Can anyone please clarify the second precondition. Do you have to have 100 payments of NI Credit for years 2016/2017 and 2017/2018 and at which class. (If you have 100 credits then what is the 26 weeks first precondition about ) What does equivalent to 50 weeks low earnings mean? Sorry I'm so confused because the second precondition  seems to negate the first precondition 

Could someone make the second condition more simple for me. I'd be so grateful 
Thanks 
Wendy

Replies

  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    edited September 2018
    For the 2nd condition you have to have been credited with class 1 or class 2 NI credits and you get these from claiming Contributions based ESA and JSA or from self employed work. Stated here. https://www.gov.uk/national-insurance/what-national-insurance-is-for
    50 times the lower earnings limit for 2016/2017 tax year was £112 per week, you times this by 50 to know the lower earnings limit.
    for 2017/18 it was £113 per week, times by 50 again.

    Condition 1 is you must have worked for at least 26 weeks in the previous 2 tax years and paid either class 1 or class 2 NI Contributions.

    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • dunnesydunnesy Member Posts: 19 Listener
    Thank you so much but am still a bit confused . I did not work in the previous 2 tax years but I rent out my house so I can pay class 2 NI. This has been confirmed by the NI office and they've given me the totals for each year. If I want to go ahead they will invoice me.  There is nothing on any website help including gov.org that says I have to have worked. Just that I have paid NI class 1 or 2 . why do you think I need to have worked 26 weeks 
    Thanks 
    Wendy
  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    It clearly states in the first condition that you must have worked at least 26 weeks in the last 2 complete tax years.

    You qualify for contributory Employment and Support Allowance (ESA) if you have paid sufficient National Insurance contributions. There are two contribution conditions you must meet:

    • First contribution condition - in one of the last two complete tax years, you must have paid Class 1 or 2 contributions on relevant earnings at the lower earnings limit for at least 26 weeks. This means you must have worked for at least 26 weeks of the last two complete tax years; and
    • Second contribution condition - in both of the last two complete tax years, you must have paid or been credited with, Class 1 or 2 contributions to the value of 50 times the lower earnings limit.


    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • dunnesydunnesy Member Posts: 19 Listener
    Thanks poppy but its not clear to me. It says that you must have paid  26 class 2 contributions and then goes on to say that this means that you have to have worked 26 weeks . actually you dont have to work to pay 26 weeks class 2 contributions, if you rent your house out you can pay class 2 contributions . if it was based on work then surely it would have said ...you have to be working for at least 26 weeksxin the previous tax year and have paid class 1 or 2 contribution NI.? 
  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    It states this in the link.  "This means you must have worked for at least 26 weeks of the last two complete tax years".


    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • dunnesydunnesy Member Posts: 19 Listener
    Thanks Poppy. I am not reading this the same way you are. My relevant earnings are through house rental . i dont read it as saying that you must have worked. they are saying that you if pay class 2 this means you have worked. They don't seem to know that you can pay class 2 other ways.
    The one thing ESA have told me is that its NI contribution based  but they not sure if its class 1 or 2.

    I am getting a family member to help me with this my as I have a pretty severe neurological disorder and my cognitive function is damaged.
    Is it possible for a simpler explanation to the the second precondition? I can times 52x113 but what does it mean ...does it mean I have to pay class 1, 2 or 3 or a minimum amount of tax? . Sorry I don't mean to be stupid but I'm completely lost . Please  can you Poppy or anyone word this precondition in another more simple way with a practical example. I would be so grateful. 
  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    The 2nd condition is you must have either paid class 1 or class 2 national insurance contributions in the previous 2 tax years prior to your claim and earned the lower earnings limit or each tax year.

    OR claimed a benefit such as ESA or JSA and been credited with class 1 NI credits to the value of 50 times the lower earning limit for each year.


    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    You also need your latest P45 to be able to claim a Contributions based benefit.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • dunnesydunnesy Member Posts: 19 Listener
    Thank you so much Poppy . we understand it now . 
  • dunnesydunnesy Member Posts: 19 Listener
    Hi poppy . The ESA paid class 3 for 2016/2017 but you sure this doesn't count as it needs to be class 1 not class 3. 
    Thanks Wendy
  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    No problem. Class 3 count towards your state pension only and these don't count for CB based benefits. https://www.gov.uk/national-insurance-credits

    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    Do you not qualify for Income Related benefits? Do you live with a partner that works, or do you have savings/capital that stops you claiming a means tested benefit?
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
  • dunnesydunnesy Member Posts: 19 Listener
    No I won't get money from income based as I have a rented house and my firm gave me my pension early because of my illness.  I have just checked the Uk. Gov NI page and class 2 ÑI does count towards contribution based ESA. Also we are expecting a proper answer on Tuesday from ESA as to the preconditions as most there don't know. Most think its class 1 for 2 years. 
  • poppy123456poppy123456 Member Posts: 23,267 Disability Gamechanger
    Class 2 counts but i'll be very surprised if you do qualify because you haven't worked for more than 2 years. Also any pension over £85 per week then CB ESA is reduced by 50p for every £1 over that amount. Good luck.
    Proud winner of the 2019 empowering others award. This award was given for supporting disabled people and their families for the benefit advice I have given to members here on the community.
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